CoinEx Hit by Hack Resulting in Significant Loss of Cryptocurrency Assets

By: crypto insight|2026/01/19 20:30:05

Key Takeaways

CoinEx, a prominent global cryptocurrency exchange, recently experienced a cybersecurity breach resulting in the loss of digital assets due to compromised hot wallets.
Blockchain security firm PeckShield estimates the losses to include $19 million in Ethereum (ETH), $11.5 million in Tron (TRON), and approximately $295,000 in Polygon (MATIC).
CoinEx assures users that all affected parties will receive full compensation for their losses.
In response, CoinEx has enhanced security by transferring $72 million worth of assets to more secure cold wallets.

WEEX Crypto News, 19 January 2026

Detailed Account of the CoinEx Hack

The cryptocurrency landscape was shaken when CoinEx, a major player in the crypto exchange world, disclosed a significant security breach. This incident involved the hacking of CoinEx’s hot wallets, leading to a substantial loss of digital assets. The exchange’s security vulnerabilities were exposed, raising concerns across the crypto community as to the robustness of online trading platforms.

The details of the attack reveal how cybercriminals exploited weaknesses in CoinEx’s hot wallet infrastructure. Hot wallets, being internet-connected, are generally more susceptible to attacks compared to cold wallets, which are kept offline. This breach highlights the continual risk that online platforms face from increasingly sophisticated cyber intrusions targeting vulnerabilities to siphon off assets.

Estimated Financial Impact

According to security insights from PeckShield, a reputable blockchain security firm, the breach led to an estimated loss of $53 million. Specifically, the firm reports losses of about $19 million in Ethereum (ETH), $11.5 million in Tron (TRON), and $295,000 in Polygon (MATIC). These figures underline the scale of the situation, showcasing how a single breach can have far-reaching financial ramifications.

In response, CoinEx has assured its user base that all affected parties will be fully compensated. This reassurance serves to maintain user confidence and asserts the company’s commitment to safeguarding its client’s interests in this difficult period.

Measures and Reactions

To mitigate further risks and secure remaining assets, CoinEx has redistributed approximately $72 million worth of digital currencies from compromised hot wallets to cold wallets, significantly reducing their online exposure and bolstering protection against potential follow-up attacks.

Additionally, CoinEx has engaged in collaborations with other exchanges to track the movement of the stolen assets. This cooperative approach aims to prevent the hackers from converting their illicit gains into fiat or other cryptocurrencies, thereby hindering their ability to capitalize on the stolen assets.

Broader Implications for the Crypto Industry

The CoinEx hack serves as a stern reminder to the entire cryptocurrency ecosystem of the potential dangers lurking within the digital trading environment. With cryptocurrencies gaining widespread interest, security remains paramount for both individual and institutional investors. This event underscores the need for exchanges to continuously evaluate, update, and strengthen their security protocols to protect user assets effectively.

This breach not only puts into perspective the ongoing threat posed by cyber criminals but also acts as a catalyst for exchanges to enhance their security frameworks proactively. It is essential for the industry to devise more robust strategies to protect itself against potential threats and safeguard the assets of their users.

Positive Steps Forward for CoinEx

Despite this setback, CoinEx’s commitment to compensating its users and enhancing security measures reflects positively on its brand. By taking responsibility and providing assurance of compensation, CoinEx has taken an important step towards maintaining trust with its user community. The adoption of more secure, cold wallet storage solutions signifies CoinEx’s dedication to creating a more secure environment for its users in the future.

Join CoinEx and explore cryptocurrency trading with enhanced security features: [Sign up here](https://www.weex.com/register?vipCode=vrmi).

FAQ

What security measures has CoinEx introduced following the hack?

CoinEx has taken significant steps to secure its platform by transferring $72 million worth of assets to cold wallets. These wallets are offline and therefore offer enhanced security against potential online attacks. Additionally, the exchange is actively cooperating with other platforms to track and mitigate the movement of stolen assets.

How is CoinEx compensating affected users?

CoinEx has assured full compensation for all affected users. This commitment signifies the exchange’s responsibility towards its clients, ensuring that users will not suffer financial losses as a result of this breach.

Which cryptocurrencies were primarily affected?

The currencies most affected by the hack include Ethereum (ETH), Tron (TRON), and Polygon (MATIC), with losses estimated at $19 million, $11.5 million, and $295,000 respectively, as reported by the blockchain security firm PeckShield.

What lessons does this incident teach the crypto industry?

The CoinEx breach emphasizes the importance of robust security measures. It serves as a crucial reminder for all crypto exchanges to evaluate their security protocols continually and to adopt more secure storage methods to avoid similar incidents.

Why are cold wallets considered more secure than hot wallets?

Cold wallets are not connected to the internet, which makes them far less susceptible to hacking attempts compared to hot wallets. By storing digital assets offline, these wallets provide a higher level of security and are recommended for safeguarding large amounts of cryptocurrency.

-- Price

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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